A glance on Average Due Date

Average Due Date

1. Introduction – When a number of transactions are settled on one date, being such a date where neither loss nor profit is incurred to either of the parties involved in the transaction. Such a date is called as Average due date.
2. Due date in case of bills of exchange or promissory note has got three grace days.ie, due date + 3 grace days.
3. But, if the terms of the bills of exchange is payable on demand or presentment, then no grace days are allowed.
4. If the due date is a public holiday then the preceding working day will be the due date.
5. If emergency or unforeseen holiday due date is next following day.
6. Note: 2012 is a leap year. Therefore there is 29 days in February.
7. Average Due Date = Base Date + Total Products

                                                                  Total Amount

8. When amount is lent in one instalment –

Average Due date = Date of Loan + Sum of days/months/years from the date of lending to the date of repayment of each                                                                  installment.